Apollo: American travelers are keeping air traffic at full altitude

[A toy aeroplane against a blue background]
Richard Drury

Air travel demand in the U.S. remains robust, according to Apollo chief economist Torsten Sløk, even as international arrivals show signs of softening. Sløk noted that daily traffic data from the nation’s 10 busiest airports indicates a modest decline in inbound foreign travelers. However, this is being balanced by continued strength in domestic travel, particularly among U.S. citizens.

Transportation Security Administration figures reinforce this resilience, with passenger volumes at U.S. airports holding steady despite global headwinds. Looking ahead, Sløk anticipates a shift in travel patterns. The U.S. trade-weighted dollar has weakened by roughly 10% year-to-date, a move that could discourage Americans from traveling abroad while making the U.S. more attractive to foreign visitors.

This dynamic is expected to boost inbound tourism through the summer months, potentially reversing the recent softness in international arrivals.

Building off Apollo’s analysis, Seeking Alpha constructed a top 10 list of U.S. airline carriers with market caps north of $500M. List is ranked according to Seeking Alpha's Quant metrics:

No. 1: Joby Aviation (JOBY [https://seekingalpha.com/symbol/JOBY]), 4.87 quant grade.

No. 2: SkyWest (SKYW [https://seekingalpha.com/symbol/SKYW]), 4.00 quant grade.

No. 3: United Airlines Holdings (UAL [https://seekingalpha.com/symbol/UAL]), 3.19 quant grade.

No. 4: Southwest Airlines (LUV [https://seekingalpha.com/symbol/LUV]), 3.11 quant grade.

No. 5: American Airlines (AAL [https://seekingalpha.com/symbol/AAL]), 3.10 quant grade.

No. 6: Delta Air Lines (DAL [https://seekingalpha.com/symbol/DAL]), 3.02 quant grade.

No. 7:Allegiant Travel Company (ALGGT), 2.92 quant grade.

No. 8: Sun Country Airlines (SNCY [https://seekingalpha.com/symbol/SNCY]), 2.92 quant grade.

No. 9: Alaska Air Group (ALK [https://seekingalpha.com/symbol/ALK]), 2.82 quant grade.

No. 10: Frontier Group Holdings (ULCC [https://seekingalpha.com/symbol/ULCC]), 2.72 quant grade.

For reference, Seeking Alpha's Quant system is driven by powerful computer processing and SA's special 'Quantamental' analysis. It awards grades to stocks based on collective value, growth, profitability, earnings per share revisions, and price momentum metrics.

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